Health Minister considers Commissioner for Waikato DHB

Health
Minister Dr David Clark has informed Waikato DHB Board that
he is seriously dissatisfied with their performance and is
considering the appointment of a Commissioner to replace
Board members.

The Board has two weeks (until 3 May) to
formally respond before a final decision will be made,
taking into account all feedback provided. This is an
important part of the natural justice process.

“This
step is not being taken lightly, however I am increasingly
concerned by Waikato DHB’s deteriorating financial
position, instability at a governance and leadership level,
and ongoing performance issues.

“Ongoing connection
between the DHB and the local community is obviously
important and so, if a Commissioner is appointed they would
be required to maintain robust arrangements to ensure
community and iwi engagement continues.

“I have made it
clear to all DHBs that financial performance needs to
improve and they need to demonstrate they have a pathway to
return to financial sustainability. I know it is challenging
after years of underfunding, however New Zealanders deserve
access to high quality services which deliver equitable
outcomes.

“Waikato’s financial performance has
continued to deteriorate. In 2017/18 they reported a deficit
of $37.2 million, and they are forecasting a $56.1 million
deficit for 2018/19 with increasing deficit forecasts in
future years.

“Despite best efforts by the Crown Monitor
who was appointed in August 2018, there has been limited
progress due to instability at the governance and leadership
level.

“Concerns remain following the 2017 independent
inquiry into the Chief Executive which led to the
resignation of both the Chair and the Chief Executive.
Recent improvements have stalled with the Board’s decision
to put the Chief Executive recruitment on hold.

“There
are also a number of ongoing service performance issues, as
well as maintaining accreditation from professional clinical
bodies.

“This is symptomatic of wider problems related
to an inefficient flow of patients through the hospital, and
through primary care and rural hospitals.

“I acknowledge
that the DHB has worked on strengthening its leadership role
in the Midland region through working more collaboratively,
and accreditation of most services has been regained. The
work programme to enable the DHB to return to a financially
sustainable position over the next three years is also a
positive step.

“However, significant concerns remain
with the Board’s performance, and there is a lack of
confidence in the Board’s ability to improve the DHB’s
overall performance. More significant action may be required
to urgently lead the necessary improvements.

“No further
public comment will be made while the process is underway
and I have had the opportunity to carefully consider any
submissions from Board members before making a final
decision,” David Clark said.

If a Commissioner is
appointed to Waikato DHB (under Section 31 of the New
Zealand Public Health and Disability Act), they would need
to undertake actions beyond December 2019 given the
significant change required. This would require legislation
to cancel the October 2019 elections for Waikato (the 2022
elections would be unaffected and would go ahead). This
approach was taken with Southern DHB in 2015/2016.

Any
Deputy Commissioner appointments would be made by the
Commissioner.

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